Overview
This session provides a comprehensive breakdown of GXT 4-hour candle profiling, focusing on swing formations, key levels, and session-based strategies to identify high-probability trading setups across Forex and futures markets.
Swing Formations and Reversal Types
- C2 closure is the simplest and most common swing formation, indicating reversals when a candle fails to close below the previous candle’s low.
- Candle wick size affects whether a candle supports expansion; small wicks allow for expansion trades, large wicks require waiting for the next candle.
- Candle 3 closures confirm reversals when closing above candle 2’s high, enabling trades on candle 4.
- Lower timeframe swing points can confirm reversals within larger candle wicks, aligning setups across multiple timeframes.
Key Levels and Models
- Focus on three main key levels: highs/lows (for reversals/retracements), fair value gaps, and order blocks (for continuations).
- Models structure targets and reversal points around these key levels, applicable across all timeframes.
- Universal framework involves aligning expansion candles in one direction away from key levels.
Session-Specific Profiling (Forex & Futures)
- Forex: Emphasize trading during 1 a.m. (London), 5 a.m., and 9 a.m. (New York) candles.
- If 1 a.m. manipulates, expect 5 a.m. continuation; if 5 a.m. manipulates, 9 a.m. should continue.
- Futures: Focus on 2 a.m. (London), 6 a.m., and 10 a.m. (New York) candles; similar manipulation-continuation logic applies.
- Align trades with expansion candles within these windows for optimal setups.
Trading Logic and Candle Alignment
- Prioritize trading in the direction of expansion candles; skip candles with large wicks or without supporting profiles.
- Confirm high/low of the day using hourly or higher key levels; ignore 15 or 30-minute levels.
- Best trades usually arise from London manipulation and New York continuation, ideally paired with key session drivers (e.g., 8:30, 9:30).
Execution Tips and Advanced Scenarios
- Fade daily candles only if previous sessions showed extreme expansion and price cannot exceed the daily open.
- When trading reversals, position entries in the lower half of the reversal candle’s range, setting stops accordingly.
- Use SMT (Smart Money Techniques) and swing confirmations as high-probability trade signals.
- Examples provided cover a variety of session-based setups, handling both ideal and less-than-ideal scenarios.
Decisions
- Focus trades on hourly and above key levels for high/low of the day confirmation.
- Wait for expansion alignment before entering trades, especially when large wicks are present.
- Pair session drivers with manipulations for optimal reversal setups.
- Use SMT and swing points for additional trade confirmation.
Action Items
- TBD – All traders: Review and practice identifying C2 closures and swing formations across charts.
- TBD – All traders: Mark and track key session times relevant to your market and session.
- TBD – All traders: Backtest strategies using the outlined framework and session logic.
Recommendations / Advice
- Trade only candles that support expansion; avoid entries on indecisive or large-wick candles.
- Prioritize multi-timeframe alignment for higher probability setups.
- Monitor key session opens and session-specific manipulation/continuation patterns for trade entries.